Saudi Aramco and Iraq’s State Organization for the Marketing of Oil (SOMO) have halted selling crude oil to India’s Nayara Energy, to align with the sanctions imposed by the European Union on the refinery. This is due to its majority bring owned by Russian companies, including Rosneft, Reuters reported.
EU sanctions have caused several payment complications, especially with SOMO. The most recent cargo of Basra crude from SOMO was discharged for Nayara by the Kalliopi, a very large crude carrier (VLCC), at Vadinar port on July 29.
Furthermore, the Nayara refinery received 1 million barrels (mmbbls) of Arab Light aboard the VLCC Georgios, which was co-loaded with a similar quantity of Basrah Heavy Iraqi crude oil, on July 18, its most recent Saudi delivery, according to LSEG data.
Nayara is receiving direct supplies from Rosneft, according to Reuters. Nayara’s 400,000 bbl/d refinery at Vadinar in western India is now running at 70–80% capacity.
Nayara Energy, which controls about 8% of India’s 5.2 million bbl/d refining capacity, has been facing challenges to transport fuel since the EU sanctions, which lead to relying on so-called dark fleet vessels after other shippers backed out.